Casino Act 1997 (SA)

South Australia Casino Act 1997 An Act to regulate the licensing and control of the casino at Adelaide; and for other purposes. Contents Part 1—Preliminary 1 Short title 2A Object 3 Interpretation 3A Interaction with Gambling Administration Act 2019 4 Close associates Part 2—Licensing of casino Division 1—Grant of licence 5 Grant of licence 6 Casino premises 7 Restriction on number of licences Division 2—Authority conferred by licence 8 Authority conferred by licence 8A Gaming machine entitlements Division 3—Term and renewal of licence 9 Term and renewal of licence Division 4—Conditions of licence 10 Conditions of licence Division 5—Transfer of licence 11 Transfer of licence Division 6—Dealings affecting casino licence 12 Dealing with licence and associated business assets 13 Dealings affecting casino business 14 Other transactions under which outsiders may acquire control or influence 14A Approval or ratification of transactions to which this Division applies Division 6A—Approval of designated persons 14B Approval of designated persons Division 7—Surrender of licence 15 Surrender of licence Division 8—Agreement with licensee 16 Approved licensing agreement 17 Casino duty agreement 18 Agreements to be tabled in Parliament Part 3—Applications for grant or transfer of licence Division 1—Eligibility to apply 19 Eligibility of applicants Division 2—Making of applications 20 Applications Division 3—The Commissioner's recommendation 21 Suitability of applicant for grant, renewal or transfer of casino licence Division 4—Investigations by the Commissioner 22 Investigations 23 Investigative powers 24 Results of investigation Division 5—Costs of investigation 25 Costs of investigation Division 6—Governor not bound by Commissioner's recommendation 26 Governor not bound Part 4—Operation of casino Division 1—Opening hours 27 Opening hours Division 1AA—Right of entry to casino premises 27AA Right of entry to casino premises Division 1A—Gambling only allowed in enclosed areas 27A Gambling only allowed in enclosed areas Division 2—Casino management and staff 28 Interpretation 29 Licensee to notify Commissioner of appointment of special employees 30 Commissioner may notify Commissioner of Police of appointment of special employees 31 Commissioner may give prohibition notice 32 Offences in relation to special employees 33 Identity cards 34 Certain staff not to gamble 35 Special employees and designated persons not to accept gratuities 36 Staff exempt from Security and Investigation Industry Act 1995 37 Commissioner may give exemption from application of Division Division 4—Approval and use of systems and equipment 38 Approval of management systems etc 39 Operations involving movement of money etc 40 Approval of installation etc of equipment 40A Approval of automated table game equipment, gaming machines and games 40B Commissioner may approve certain systems to be operated in connection with authorised games, gaming machines and automated table game equipment 40C Commissioner may approve staff training courses 40D Commissioner may approve facial recognition system 41 Interference with approved systems, equipment etc Division 4AA—Disposal of games and gaming machines 41AA Sale or supply of equipment, games, gaming machines and components Division 4A—Codes of practice 41B Compliance with codes of practice Division 5—Prohibited practices 42 Gambling on credit prohibited 42A Prohibition of ATMs 42B Provisions relating to authorised games, gaming machines and automated table games 42C Prohibition of gambling outside of gaming areas 42D Provisions relating to operation of facial recognition system Division 6—Exclusion of children 43 Exclusion of children Division 7—General barring powers 44 Licensee's power to bar 45 Commissioner's power to bar 45A Commissioner of Police's power to bar 46 Summary exclusion in case of intoxication etc Division 9—Consultation with licensee 47A Requirement for Commissioner to consult licensee Part 5—Financial matters Division 1—Accounts and audit 48 Accounts and audit 50 Duty of auditor Division 2—Casino duty 51 Liability to casino duty 52 Evasion and underpayment of casino duty 52AA Investigatory powers relating to casino duty Division 3—Recovery of administration costs 52A Commissioner to recover administration costs Part 7—Power to deal with default Division 6—Official management 63 Power to appoint manager 64 Powers of manager Division 7—Administrators, controllers and liquidators 64A Administrators, controllers and liquidators Part 9—Miscellaneous 68 Reasons for decision 69 Confidentiality of information provided by Commissioner of Police 72 Regulations Legislative history The Parliament of South Australia enacts as follows: Part 1—Preliminary 1—Short title This Act may be cited as the Casino Act 1997. 2A—Object The object of this Act is to provide for the licensing, supervision and control of the Adelaide Casino and, in particular, to ensure— (a) that the Adelaide Casino is properly managed and operated; and (b) that those involved in the control, management and operation of the Adelaide Casino are suitable and fit and proper persons to exercise their respective functions and responsibilities; and (c) that gambling in the Adelaide Casino is conducted responsibly, fairly and honestly, with due regard to minimising the harm caused by gambling; and (ca) that minors are prohibited from gambling and that minors are not encouraged to gamble; and (d) that the interest of the State in the taxation of gambling revenue arising from the operation of the Adelaide Casino is properly protected. 3—Interpretation (1) In this Act, unless the contrary intention appears— advertising code of practice means an advertising code of practice prescribed under the Gambling Administration Act 2019; approved licensing agreement—see section 16; authorised game means a game of chance, or a game combined of chance and skill, authorised or approved under this Act or the conditions of the casino licence; automated table game equipment means equipment of a kind defined in the approved licensing agreement as automated table game equipment; cashless gaming system means a system that enables the storage of monetary value for use in operating a gaming machine or automated table game equipment; casino duty agreement—see section 17; casino licence means the licence (under this Act or the former Act) to operate the casino; casino premises means the premises defined in the casino licence, or by the Governor in accordance with section 6(3), as the casino premises; child means a person under the age of 18 years; Commissioner has the same meaning as in the Gambling Administration Act 2019; Court means the Licensing Court of South Australia; designated person means— (a) a director of the licensee; or (b) an executive officer of the licensee; or (c) a person who is employed or working in an executive capacity who exercises discretion, influence or control in respect of business operations under the casino licence; or (d) a person, or a person of a class, designated by the Commissioner for the purpose; domestic partner means a person who is a domestic partner within the meaning of the Family Relationships Act 1975, whether declared as such under that Act or not; executive officer of a body corporate is— (a) a secretary or public officer of the body corporate; or (b) a person responsible for managing the body corporate's business or any aspect of its business; former Act means the Casino Act 1983; gambling means the playing of a game for monetary or other stakes and includes making or accepting a wager; gambling administration guidelines means the gambling administration guidelines issued by the Commissioner under the Gambling Administration Act 2019; gambling chips means chips or tokens used or capable of being used as gambling stakes or prizes; gaming area means a part of the casino premises that is defined by the Commissioner by notice in the Gazette (in accordance with any requirements in the approved licensing agreement) as a gaming area (whether the notice was published in the Gazette before or after the commencement of this definition); gaming machine means gaming machine as defined in the Gaming Machines Act 1992 but does not include automated table game equipment; inspector means a person appointed as an inspector for the purposes of this Act under the Gambling Administration Act 2019; police officer means any member of the police force; premium customer means a customer of the casino who falls within a class defined in the approved licensing agreement as premium customers to whom the licensee will afford special privileges (including access to gambling in premium gaming areas); premium gaming area means a gaming area, or part of a gaming area, that is defined by the Commissioner by notice in the Gazette (in accordance with any requirements in the approved licensing agreement) as an area set aside for premium customers and that is only accessible to other customers in accordance with the approved licensing agreement (whether the notice was published in the Gazette before or after the commencement of this definition); prescribed gaming machine component means prescribed gaming machine component as defined in the Gaming Machines Act 1992; responsible gambling code of practice means a responsible gambling code of practice prescribed under the Gambling Administration Act 2019; spouse—a person is the spouse of another if they are legally married; staff member means any of the following: (a) an employee of the licensee (including a designated person or a special employee); (b) a person employed or engaged (either by the licensee or someone else) to work at the casino premises. (2) In this Act, administrator, controller and liquidator have (unless the contrary intention appears) the same respective meanings as in the Corporations Act 2001 of the Commonwealth. 3A—Interaction with Gambling Administration Act 2019 This Act and the Gambling Administration Act 2019 will be read together as a single Act (and a reference in a provision of this Act to "this Act" will be taken to include, where relevant, a reference to the Gambling Administration Act 2019). 4—Close associates (1) Two persons are close associates if— (a) one is a spouse, domestic partner, parent, brother, sister or child of the other; or (b) they are members of the same household; or (c) they are in partnership; or (d) they are joint venturers; or (da) they are related bodies corporate within the meaning of the Corporations Act 2001 of the Commonwealth; or (e) one is a body corporate and the other is a director or executive officer of the body corporate; or (f) one is a body corporate (other than a public company whose shares are quoted on a prescribed financial market) and the other is a shareholder in the body corporate; or (g) one is a body corporate whose shares are quoted on a prescribed financial market and the other has a substantial holding in the body corporate; or (h) one has a right to participate (otherwise than as a shareholder in a body corporate) in, or is remunerated by reference to, proceeds or profits derived from a business conducted by the other; or (i) one is in a position to exercise control or significant influence over the conduct of the other; or (j) a chain of relationships can be traced between them under any one or more of the above paragraphs. (1a) For the purposes of this section, a reference to a parent, brother, sister or child of a person will be taken to include a reference to a step‑parent, step‑brother, step‑sister or step‑child (as the case requires) of the person. (2) In subsection (1)— prescribed financial market means a prescribed financial market within the meaning of section 9 of the Corporations Act 2001 of the Commonwealth; substantial holding in a body corporate has the same meaning as in section 9 of the Corporations Act 2001 of the Commonwealth. Part 2—Licensing of casino Division 1—Grant of licence 5—Grant of licence (1) The Governor may grant a casino licence. (2) In the case of the first grant of a casino licence under this section, the grant is to be made to Adelaide Casino Pty Ltd (ACN 082 362 061). (3) Any later grant of a casino licence under this section is to be made, on the recommendation of the Commissioner, to an applicant for the licence. 6—Casino premises (1) In the case of the first grant of a casino licence after the commencement of this Act, the licence may only be granted for premises in respect of which a casino licence is, or was last, in force. (2) After the first grant of a casino licence under this Act, a casino licence may be granted for premises at a different site (to take effect on or after the surrender or termination of an earlier licence) if the Commissioner, after conducting a public inquiry into the appropriateness of the new site, recommends the grant of the licence for those premises. (2a) The casino premises will be only regarded as being at a different site for the purposes of subsection (2) if no part of the premises is situated on the previous site. (3) The Governor may, on the recommendation of the Commissioner (made without public inquiry), redefine the boundaries of the casino premises by notice in the Gazette, if the new boundaries consist only of an extension or contraction of the previous boundaries. 7—Restriction on number of licences There is not to be more than one casino licence in force under this Act at the same time. Division 2—Authority conferred by licence 8—Authority conferred by licence (1) Despite any other law of the State, but subject to this Act— (a) the licensee may operate the casino in accordance with the conditions of the licence; and (b) a person may participate in an authorised game conducted at the casino premises. (2) The operation of the casino in accordance with the licence does not, in itself, constitute a public or private nuisance. 8A—Gaming machine entitlements (1) The licence authorises the licensee to operate a number of gaming machines equivalent to the number of gaming machine entitlements held in respect of the gaming areas by the licensee under the Gaming Machines Act 1992. (2) The number of gaming machine entitlements held in respect of the gaming areas cannot exceed the maximum number specified in the approved licensing agreement. Division 3—Term and renewal of licence 9—Term and renewal of licence (1) The licence is to be granted for a term fixed under the approved licensing agreement. (2) If before the end of a term for which the licence has been granted or renewed, the parties to the approved licensing agreement renegotiate the agreement, the Governor may renew the licence for a term fixed under the renegotiated agreement. (3) However, the licensee is to have no entitlement to, or legitimate expectation of, renewal. Division 4—Conditions of licence 10—Conditions of licence (1) The conditions of the licence consist of— (a) subject to section 16(1a)—the conditions fixed by this Act; and (b) the conditions (supplementary licence conditions) fixed by or in accordance with the approved licensing agreement. (2) Subject to the approved licensing agreement, the Governor may, on the recommendation of the Commissioner, vary supplementary licence conditions. Division 5—Transfer of licence 11—Transfer of licence (1) The Governor may, on the recommendation of the Commissioner approve the transfer of the casino licence. (2) On a transfer of the licence— (a) the transferee succeeds to all the rights and obligations of the transferor under the approved licensing agreement and the casino duty agreement; and (ab) the transferee succeeds to all gaming machine entitlements (within the meaning of the Gaming Machines Act 1992) held by the transferor immediately before the transfer; and (b) the approved licensing agreement and the casino duty agreement govern the conditions of the licence in the same way and to the same extent as before the transfer. Division 6—Dealings affecting casino licence 12—Dealing with licence and associated business assets The licensee cannot mortgage, charge or encumber any of the following assets without the approval of the Commissioner— (a) the casino licence; or (b) business assets associated with the operation of the casino (including incidental assets such as the facilities for providing food and refreshments for casino patrons). 13—Dealings affecting casino business (1) The licensee must not enter into a transaction under which the licensee disposes of, or grants an interest in, the business conducted under the casino licence to someone else without the approval of the Commissioner. (2) The following are (for example) transactions under which the licensee grants an interest in the business conducted under the casino licence— (a) a partnership agreement that relates to business conducted or to be conducted under the licence; (b) an agreement or arrangement under which a person participates in proceeds or profits of business conducted or to be conducted under the licence; (c) an agreement or arrangement under which the licensee remunerates another by reference to proceeds or profits of the business or any aspect of the business. (3) However, this section does not invalidate an agreement or arrangement made subject to a condition precedent under which it is not to take effect until approved by the Commissioner. 14—Other transactions under which outsiders may acquire control or influence (1) This section applies to a transaction if it is a transaction (other than one for which the Commissioner's approval is required under this Division or Division 6A) under which a person or a group of persons who are close associates of each other attain a position of control or significant influence over the licensee. (2) Within 14 days after the licensee becomes aware of a transaction to which this section applies, the licensee must— (a) inform the Commissioner of the transaction; and (b) provide any information about the transaction that is available to the licensee. Maximum penalty: $500 000. (3) If the licensee is a party to a transaction to which this section applies, and the transaction takes effect before the Commissioner approves it, the licensee is liable to disciplinary action. (4) If a transaction to which this section applies has not been approved or ratified by the Commissioner, the Commissioner may, after allowing the parties to the transaction a reasonable opportunity to be heard, make orders of one or more of the following kinds: (a) an order avoiding the transaction; (b) an order requiring a person who has acquired an interest under the transaction to dispose of that interest within a specified time; (c) an order terminating a contractual or other relationship under which control or influence might be exercised over the licensee; (d) an order preventing or regulating the exercise of power or influence acquired as a result of the transaction; (e) an order (which may include an order for restitution) dealing with any consequential or ancillary issues. (5) A person adversely affected by an order under subsection (4) may, within 1 month after the date of the order or a longer period allowed by the Court, appeal to the Court against the order. (6) On an appeal, the Court may— (a) confirm, vary or revoke the Commissioner's order and, if the order is revoked, make any order that should have been made in the first place; and (b) make incidental and ancillary orders. (7) The Court may, if satisfied on application by the Commissioner that there is good reason to do so, register an order of the Commissioner in the Court and, on registration, the order may be enforced as a judgment of the Court. 14A—Approval or ratification of transactions to which this Division applies (1) An application for the Commissioner's approval or ratification of a transaction to which this Division applies— (a) must be made to the Commissioner by the parties to the transaction in the form required by the Commissioner; and (b) must be supported by the information required by the Commissioner. (2) If a transaction to which this Division applies results or might result in the acquisition by a person other than the licensee of power to conduct, or to control or exercise significant influence over the conduct of, the casino business, the Commissioner— (a) must assess the suitability of that person to exercise that power and, in doing so, must apply (to the extent they are applicable) the same criteria as apply to assessing the suitability of a prospective licensee; and (b) must not approve or ratify the transaction unless satisfied that the person is a suitable person to exercise the relevant power. (3) An application for the Commissioner's approval or ratification of a transaction to which this Division applies may be withdrawn by a party to the transaction at any time before the application is determined. Division 6A—Approval of designated persons 14B—Approval of designated persons (1) The licensee must ensure that each person who becomes a designated person has been approved by the Commissioner. Maximum penalty: $250 000. (2) The licensee must, within 14 days after a person ceases to be a designated person, give the Commissioner written notice identifying the person and stating the date when, and the reason why, the person ceased to be a designated person. Maximum penalty: $50 000. (3) This section applies in relation to designated persons, other than directors of the licensee, subject to any limitation for the time being specified by the Commissioner by written notice to the licensee. (4) This section does not apply in respect of an administrator, controller or liquidator of the licensee who has assumed control over the business conducted under the licence or a person acting on the authority of such a person. (5) An application for the Commissioner's approval of a person to become a designated person in relation to the licensee— (a) must be in the form required by the Commissioner; and (b) must be supported by the information required by the Commissioner verified, if the Commissioner so requires, by statutory declaration; and (c) must be made by the licensee. (6) If a change of circumstances occurs after an application is made but before it is determined, the licensee must immediately give the Commissioner full details of the change. Maximum penalty: $75 000. (7) An application may be withdrawn by the licensee before the application is determined. (8) The Commissioner must not approve a person to become a designated person in relation to the licensee unless satisfied that the person is a fit and proper person to become a designated person in relation to the licensee. (9) A person is not a fit and proper person to become a designated person in relation to the licensee if— (a) the person has been found guilty or convicted of an offence as prescribed by the regulations; or (b) in the case of a body corporate— (i) the body corporate is a body corporate, or is a body corporate of a class, prescribed by the regulations; or (ii) the body corporate is a prescribed organisation; or (c) in the case of a natural person, the person— (i) is— (A) a member of a prescribed organisation; or (B) a close associate of a person who is a member of a prescribed organisation or is subject to a control order under the Serious and Organised Crime (Control) Act 2008; or (ii) is an insolvent under administration within the meaning of the Corporations Act 2001 of the Commonwealth. (9a) For the purpose of determining whether a person is a fit and proper person to become a designated person in relation to the licensee, the Commissioner— (a) may cause the person's photograph to be taken; and (b) may cause the person's fingerprints to be taken; and (c) may have regard to the following: (i) the corporate structure of the person; (ii) the person's financial background and resources; (iii) the person's reputation; (iv) the character, reputation and financial background of the person's close associates; (v) any representations made by the Minister; (vi) any other matters the Commissioner thinks fit. (10) The Commissioner must give the Commissioner of Police a copy of all applications made under this section and must allow the Commissioner of Police a reasonable opportunity to make representations on the application. (11) The Commissioner of Police must make available to the Commissioner information about criminal convictions and other information to which the Commissioner of Police has access relevant to whether the application should be granted. (11a) The Commissioner may, by instrument in writing, exempt the licensee from compliance with this section to an extent specified in the instrument of exemption. (12) In this section— prescribed organisation—the following are prescribed organisations: (a) a declared organisation within the meaning of the Serious and Organised Crime (Control) Act 2008; (b) a criminal organisation within the meaning of Division 1 or Division 2 of Part 3B of the Criminal Law Consolidation Act 1935; (c) any other organisation prescribed by the regulations for the purposes of this definition. Division 7—Surrender of licence 15—Surrender of licence (1) The licensee may surrender the casino licence. (2) The surrender of the casino licence does not affect liabilities incurred by the licensee before the surrender takes effect. Division 8—Agreement with licensee 16—Approved licensing agreement (1) There is to be an agreement (the approved licensing agreement) between the licensee and the Minister about— (a) the operation of the casino; and (b) the term of the licence; and (c) the conditions of the licence; and (d) the performance of the licensee's responsibilities under the licence or this Act. (1a) The agreement may exempt the licensee from, or modify the licensee's obligation to comply with— (a) specified requirements of this Act or conditions fixed by this Act; or (b) provisions of a code or a requirement prescribed by the Commissioner under this Act, in relation to premium customers or premium gaming areas. (1b) An exemption or modification referred to in subsection (1a) may be subject to conditions specified in the approved licensing agreement. (2) The agreement may deal with other subjects relevant to the casino. (3) The agreement— (a) is to be entered into with a prospective licensee before the licence is granted or with a licensee before renewal of the licence; and (b) subject to subsection (1a)—must be consistent with the provisions of this Act. (4) If the agreement so provides, specified provisions of the agreement become conditions of the casino licence. (4a) The agreement binds the licensee, the Minister and the Commissioner and, if the agreement so provides, any other person who consents to be bound by the agreement. (5) The agreement may be varied by a later agreement between the parties but such a variation must (subject to subsection (1a)) be consistent with the provisions of this Act. (6) The agreement may contain an assurance, on terms and conditions fixed in the agreement, that the exclusiveness of the licensee's right to operate a casino in this State will not be impugned during a period set out in the agreement. 17—Casino duty agreement (1) There is to be an agreement (the casino duty agreement) between the licensee and the Treasurer— (a) fixing the amount, or basis of calculation, of casino duty; and (b) providing for the payment of casino duty; and (c) dealing with interest and penalties to be paid for late payment or non-payment of casino duty. (2) The agreement is to be entered into with a prospective licensee before the licence is granted or with a licensee before renewal of the licence. (3) The agreement may be varied by a later agreement between the parties. (4) The casino duty agreement or an agreement for variation of the casino duty agreement operates as a deed—despite the absence of the formalities of execution and delivery. (5) The casino duty agreement does not attract stamp duty. (6) Before entering into a casino duty agreement, the Treasurer may require the licensee or prospective licensee to give security for compliance with its obligations under the agreement. (7) The Treasurer may delegate any powers or functions under the casino duty agreement or under this Act— (a) to a specified person or body; or (b) to a person occupying a specified office or position. (8) A delegation— (a) may be made subject to conditions and limitations specified in the instrument of delegation; and (b) if the instrument of delegation so provides, may be further delegated by the delegate; and (c) is revocable at will and does not prevent the Treasurer from acting personally in a matter. 18—Agreements to be tabled in Parliament (1) The Minister must, within 12 sitting days after entering into an approved licensing agreement or an agreement for the variation of an approved licensing agreement, have copies of the agreement laid before both Houses of Parliament. (2) The Treasurer must, within 12 sitting days after entering into a casino duty agreement or an agreement for the variation of a casino duty agreement, have copies of the agreement laid before both Houses of Parliament. Part 3—Applications for grant or transfer of licence Division 1—Eligibility to apply 19—Eligibility of applicants An applicant for the grant or transfer of the casino licence must be a body corporate. Division 2—Making of applications 20—Applications (1) Applications for the grant, renewal or transfer of the casino licence are to be made to the Commissioner. (2) An application— (a) must be in the form required by the Commissioner; and (b) in the case of an application for the transfer of the licence—must be made jointly by the proposed transferor and transferee; and (c) must be supported by the information required by the Commissioner. (3) If a change of circumstances occurs after an application is made but before it is determined, the applicant must immediately give the Commissioner full details of the change. Maximum penalty: $75 000. (4) An applicant for a licence may withdraw the application at any time and, in the case of an application for the transfer of a licence, either party to the application may withdraw the application at any time. Division 3—The Commissioner's recommendation 21—Suitability of applicant for grant, renewal or transfer of casino licence (1) The Commissioner must not recommend the grant or renewal of the casino licence unless satisfied that the applicant is a suitable person to operate the casino. (2) If the Commissioner is satisfied that two or more applicants would be suitable persons to operate the casino, the Commissioner may recommend to the Governor that a choice be made between those applicants (but a recommendation need not be delayed until the Commissioner has assessed all applications). (3) The Commissioner must not recommend the transfer of the casino licence unless satisfied that the applicant that is the proposed transferee is a suitable person to operate the casino. (4) In assessing the suitability of an applicant, the Commissioner may have regard to— (a) the applicant's corporate structure; and (b) the extent of the applicant's financial resources and whether they are suitable and adequate to ensure the financial stability of the casino; and (c) the applicant's financial background; and (d) the extent of the applicant's business acumen and experience and, in particular, whether the applicant's business experience would suggest that it could operate the casino successfully; and (e) the applicant's reputation; and (f) the character, reputation, and financial background of the applicant's close associates; and (g) any representations made by the Minister; and (h) any other matters the Commissioner thinks fit. (5) In considering an application for a casino licence (other than an application for the first grant of a licence after the commencement of this Act), the Commissioner may have regard to— (a) the nature and standard of the casino premises and the facilities to be provided by, or in conjunction with, the casino; and (b) the likely impact of the casino on tourism, employment and economic development in the region in which the casino is (or is to be) located. Division 4—Investigations by the Commissioner 22—Investigations (1) The Commissioner must carry out the investigations and make the inquiries it considers necessary to enable it to make an appropriate recommendation on an application un